Fair Value (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present information with respect to our financial assets and liabilities carried at fair value in our consolidated statement of condition on a recurring basis as of the dates indicated. No transfers of financial assets or liabilities between levels 1 and 2 occurred during 2013 or 2012.



	Fair-Value Measurements on a Recurring Basis
	as of December 31, 2013
(In millions)	Quoted Market Prices in Active Markets (Level 1)		Pricing Methods with Significant Observable Market Inputs (Level 2)		Pricing Methods with Significant Unobservable Market Inputs (Level 3)		Impact of Netting⁽¹⁾			Total Net Carrying Value in Consolidated Statement of Condition
Assets:
Trading account assets:
U.S. government securities	$	20								$	20
Non-U.S. government securities	399									399
Other	67		$	357						424
Total trading account assets	486		357							843
Investment securities available for sale:
U.S. Treasury and federal agencies:
Direct obligations	—		709							709
Mortgage-backed securities	—		22,847		$	716				23,563
Asset-backed securities:
Student loans	—		14,119		423					14,542
Credit cards	—		8,186		24					8,210
Sub-prime	—		1,203		—					1,203
Other	—		532		4,532					5,064
Total asset-backed securities	—		24,040		4,979					29,019
Non-U.S. debt securities:
Mortgage-backed securities	—		10,654		375					11,029
Asset-backed securities	—		4,592		798					5,390
Government securities	—		3,761		—					3,761
Other	—		4,263		464					4,727
Total non-U.S. debt securities	—		23,270		1,637					24,907
State and political subdivisions	—		10,220		43					10,263
Collateralized mortgage obligations	—		5,107		162					5,269
Other U.S. debt securities	—		4,972		8					4,980
U.S. equity securities	—		34		—					34
Non-U.S. equity securities	—		1		—					1
U.S. money-market mutual funds	—		422		—					422
Non-U.S. money-market mutual funds	—		7		—					7
Total investment securities available for sale	—		91,629		7,545					99,174
Other assets:
Derivative instruments:
Foreign exchange contracts	—		11,892		19		$	(6,442	)	5,469
Interest-rate contracts	—		65		—		(59		)	6
Other	—		1		—		—			1
Total derivative instruments	—		11,958		19		(6,501		)	5,476
Other	97		—		—		—			97
Total assets carried at fair value	$	583	$	103,944	$	7,564	$	(6,501	)	$	105,590
Liabilities:
Accrued expenses and other liabilities:
Derivative instruments:
Foreign exchange contracts			$	11,454	$	17	$	(5,458	)	$	6,013
Interest-rate contracts			331		—		(94		)	237
Other			—		9		—			9
Total derivative instruments			11,785		26		(5,552		)	6,259
Other	$	97	—		—		—			97
Total liabilities carried at fair value	$	97	$	11,785	$	26	$	(5,552	)	$	6,356

⁽¹⁾Represents counterparty netting against level-2 financial assets and liabilities, where a legally enforceable master netting agreement exists between State Street and the counterparty. Netting also reflects asset and liability reductions of $1.93 billion and $979 million, respectively, for cash collateral received from and provided to derivative counterparties.



	Fair-Value Measurements on a Recurring Basis
	as of December 31, 2012
(In millions)	Quoted Market Prices in Active Markets (Level 1)		Pricing Methods with Significant Observable Market Inputs (Level 2)		Pricing Methods with Significant Unobservable Market Inputs (Level 3)		Impact of Netting⁽¹⁾			Total Net Carrying Value in Consolidated Statement of Condition
Assets:
Trading account assets:
U.S. government securities	$	20								$	20
Non-U.S. government securities	391									391
Other	71		$	155						226
Total trading account assets	482		155							637
Investment securities available for sale:
U.S. Treasury and federal agencies:
Direct obligations	3		838							841
Mortgage-backed securities	—		31,387		$	825				32,212
Asset-backed securities:
Student loans	—		15,833		588					16,421
Credit cards	—		9,919		67					9,986
Sub-prime	—		1,399		—					1,399
Other	—		683		3,994					4,677
Total asset-backed securities	—		27,834		4,649					32,483
Non-U.S. debt securities:
Mortgage-backed securities	—		10,850		555					11,405
Asset-backed securities	—		5,694		524					6,218
Government securities	—		3,199		—					3,199
Other	—		4,166		140					4,306
Total non-U.S. debt securities	—		23,909		1,219					25,128
State and political subdivisions	—		7,503		48					7,551
Collateralized mortgage obligations	—		4,837		117					4,954
Other U.S. debt securities	—		5,289		9					5,298
U.S. equity securities	—		31		—					31
Non-U.S. equity securities	—		1		—					1
U.S. money-market mutual funds	—		1,062		—					1,062
Non-U.S. money-market mutual funds	—		121		—					121
Total investment securities available for sale	3		102,812		6,867					109,682
Other assets:
Derivatives instruments:
Foreign exchange contracts	—		9,265		113		$	(4,981	)	4,397
Interest-rate contracts	—		223		—		(64		)	159
Total derivative instruments	—		9,488		113		(5,045		)	4,556
Other	66		2		—		—			68
Total assets carried at fair value	$	551	$	112,457	$	6,980	$	(5,045	)	$	114,943
Liabilities:
Accrued expenses and other liabilities:
Derivative instruments:
Foreign exchange contracts			$	8,978	$	106	$	(4,052	)	$	5,032
Interest-rate contracts			345		—		(19		)	326
Other			—		9		—			9
Total derivative instruments			9,323		115		(4,071		)	5,367
Other	$	66	—		—		—			66
Total liabilities carried at fair value	$	66	$	9,323	$	115	$	(4,071	)	$	5,433

⁽¹⁾Represents counterparty netting against level-2 financial assets and liabilities, where a legally enforceable master netting agreement exists between State Street and the counterparty. Netting also reflects asset and liability reductions of $1.45 billion and $478 million, respectively, for cash collateral received from and provided to derivative counterparties.

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation



	Fair-Value Measurements Using Significant Unobservable Inputs
	Year Ended December 31, 2013
	Fair Value as of December 31, 2012		Total Realized and Unrealized Gains (Losses)					Purchases		Issuances	Sales			Settlements			Transfers into Level 3		Transfers out of Level 3			Fair Value as of December 31, 2013		Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of December 31, 2013
(In millions)			Recorded in Revenue		Recorded in Other Comprehensive Income
Assets:
Investment securities available for sale:
U.S. Treasury and federal agencies, mortgage-backed securities	$	825						$	92					$	(109	)			$	(92	)	$	716
Asset-backed securities:
Student loans	588		$	2	$	12		79			$	(26	)	(31		)			(201		)	423
Credit cards	67		—		—			—			—			(43		)			—			24
Other	3,994		53		9			1,721			(34		)	(1,188		)			(23		)	4,532
Total asset-backed securities	4,649		55		21			1,800			(60		)	(1,262		)			(224		)	4,979
Non-U.S. debt securities:
Mortgage-backed securities	555		—		(1		)	33			—			(4		)			(208		)	375
Asset-backed securities	524		5		3			531			—			(142		)	$	160	(283		)	798
Other	140		—		1			397			—			20			—		(94		)	464
Total non-U.S. debt securities	1,219		5		3			961			—			(126		)	160		(585		)	1,637
State and political subdivisions	48		1		(2		)	—			—			(4		)	—		—			43
Collateralized mortgage obligations	117		1		(5		)	218			—			(39		)	14		(144		)	162
Other U.S. debt securities	9		—		(1		)	—			—			—			—		—			8
Total investment securities available for sale	6,867		62		16			3,071			(60		)	(1,540		)	174		(1,045		)	7,545
Other assets:
Derivative instruments:
Derivative instruments, Foreign exchange contracts	113		103		—			20			—			(217		)	—		—			19		$	(2	)
Total derivative instruments	113		103		—			20			—			(217		)			—			19		(2		)
Total assets carried at fair value	$	6,980	$	165	$	16		$	3,091	—	$	(60	)	$	(1,757	)	$	174	$	(1,045	)	$	7,564	$	(2	)



	Fair-Value Measurements Using Significant Unobservable Inputs
	Year Ended December 31, 2012
	Fair Value as of December 31, 2011		Total Realized and Unrealized Gains (Losses)						Purchases		Issuances	Sales			Settlements			Transfers into Level 3		Transfers out of Level 3			Fair Value as of December 31, 2012		Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of December 31, 2012
(In millions)			Recorded in Revenue			Recorded in Other Comprehensive Income
Assets:
Investment securities available for sale:
U.S. Treasury and federal agencies:
Mortgage-backed securities	$	1,189				$	2								$	(115	)	$	50	$	(301	)	$	825
Asset-backed securities:
Student loans	860		$	2		15			$	100					(48		)	—		(341		)	588
Credit cards	91		6			(6		)	239			$	(62	)	(86		)	21		(136		)	67
Other	2,798		41			69			1,920			(12		)	(788		)	12		(46		)	3,994
Total asset-backed securities	3,749		49			78			2,259			(74		)	(922		)	33		(523		)	4,649
Non-U.S. debt securities:
Mortgage-backed securities	1,457		—			5			799			—			9			—		(1,715		)	555
Asset-backed securities	1,768		2			8			1,317			—			(78		)	—		(2,493		)	524
Other	71		—			(2		)	539			—			1			—		(469		)	140
Total non-U.S. debt securities	3,296		2			11			2,655			—			(68		)	—		(4,677		)	1,219
State and political subdivisions	50		—			(1		)	—						(1		)	—		—			48
Collateralized mortgage obligations	227		369			3			283			(45		)	(451		)	45		(314		)	117
Other U.S. debt securities	2		—			—			—			—			(2		)	9		—			9
Total investment securities available for sale	8,513		420			93			5,197			(119		)	(1,559		)	137		(5,815		)	6,867
Other assets:
Derivative instruments:
Foreign exchange contracts	168		(85		)	—			137			—			(107		)	—		—			113		$	(24	)
Interest-rate contracts	10		(10		)	—			—			—			—			—		—			—		—
Total derivative instruments	178		(95		)	—			137			—			(107		)	—		—			113		(24		)
Total assets carried at fair value	$	8,691	$	325		$	93		$	5,334	—	$	(119	)	$	(1,666	)	$	137	$	(5,815	)	$	6,980	$	(24	)

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation



	Fair-Value Measurements Using Significant Unobservable Inputs
	Year Ended December 31, 2012
	Fair Value as of December 31, 2011		Total Realized and Unrealized (Gains) Losses				Purchases	Issuances		Sales	Settlements			Transfers into Level 3	Transfers out of Level 3	Fair Value as of December 31, 2012		Change in Unrealized (Gains) Losses Related to Financial Instruments Held as of December 31, 2012
(In millions)			Recorded in Revenue			Recorded in Other Comprehensive Income
Liabilities:
Accrued expenses and other liabilities:
Derivative instruments:
Foreign exchange contracts	$	161	$	(93	)			$	133		$	(95	)			$	106	$	(27	)
Interest-rate contracts	11		(11		)			—			—					—		—
Other	9		—					—			—					9		—
Total derivative instruments	181		(104		)			133			(95		)			115		(27		)
Other	20		—					—			(20		)			—
Total liabilities carried at fair value	$	201	$	(104	)	—	—	$	133	—	$	(115	)	—	—	$	115	$	(27	)



	Fair-Value Measurements Using Significant Unobservable Inputs
	Year Ended December 31, 2013
	Fair Value as of December 31, 2012		Total Realized and Unrealized (Gains) Losses			Purchases	Issuances		Sales	Settlements			Transfers into Level 3	Transfers out of Level 3	Fair Value as of December 31, 2013		Change in Unrealized (Gains) Losses Related to Financial Instruments Held as of December 31, 2013
(In millions)			Recorded in Revenue		Recorded in Other Comprehensive Income
Liabilities:
Accrued expenses and other liabilities:
Derivative instruments:
Foreign exchange contracts	$	106	$	40			$	18		$	(147	)			$	17	$	(1	)
Other	9		—				—			—					9		—
Total derivative instruments	115		40				18			(147		)			26		(1		)
Total liabilities carried at fair value	$	115	$	40	—	—	$	18	—	$	(147	)	—	—	$	26	$	(1	)

Level 3 Total Realized And Unrealized Gains And Losses Recorded In Revenue

The following table presents total realized and unrealized gains and losses for the years indicated that were recorded in revenue for our level-3 financial assets and liabilities:



	Years Ended December 31,
	Total Realized and Unrealized Gains (Losses) Recorded in Revenue							Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of December 31,
(In millions)	2013		2012		2011			2013			2012		2011
Fee revenue:
Trading services	$	63	$	9	$	(13	)	$	(1	)	$	3	$	(9	)
Total fee revenue	63		9		(13		)	(1		)	3		(9		)
Net interest revenue	62		420		561			—			—		—
Total revenue	$	125	$	429	$	548		$	(1	)	$	3	$	(9	)

Fair Value Inputs, Assets and Liabilities, Quantitative Information

The following table presents quantitative information, as of the dates indicated, about the valuation techniques and significant unobservable inputs used in the valuation of our level-3 financial assets and liabilities measured at fair value on a recurring basis for which we use internally-developed pricing models. The significant unobservable inputs for our level-3 financial assets and liabilities whose fair value is measured using pricing information from non-binding broker or dealer quotes are not included in the table, as the specific inputs applied are not provided by the broker/dealer.



	Quantitative Information about Level-3 Fair-Value Measurements
	Fair Value						Weighted-Average
(Dollars in millions)	As of December 31, 2013		As of December 31, 2012		Valuation Technique	Significant Unobservable Input	As of December 31, 2013		As of December 31, 2012
Significant unobservable inputs readily available to State Street:
Assets:
Asset-backed securities, student loans	$	13	$	12	Discounted cash flows	Credit spread	3.5	%	6.7	%
Asset-backed securities, credit cards	24		67		Discounted cash flows	Credit spread	2.0		7.1
Asset-backed securities, other	92		103		Discounted cash flows	Credit spread	1.5		1.5
State and political subdivisions	43		48		Discounted cash flows	Credit spread	1.7		1.9
Derivative instruments, foreign exchange contracts	19		113		Option model	Volatility	11.4		9.8
Total	$	191	$	343
Liabilities:
Derivative instruments, foreign exchange contracts	$	17	$	106	Option model	Volatility	11.2		9.8
Derivative instruments, other⁽¹⁾	9		9		Discounted cash flows	Participant redemptions	7.5		6.7
Total	$	26	$	115

⁽¹⁾Relates to stable value wrap contracts; refer to the sensitivity discussion following the tables presented below, and to note 11.

Schedule of Availability of Significant Unobservable Inputs by Balance Sheet Classification

The following tables present information with respect to the composition of our level-3 financial assets and liabilities, by availability of significant unobservable inputs, as of the dates indicated:



December 31, 2013	Significant Unobservable Inputs Readily Available to State Street⁽¹⁾		Significant Unobservable Inputs Not Developed by State Street and Not Readily Available⁽²⁾		Total Assets and Liabilities with Significant Unobservable Inputs
(In millions)
Assets:
U.S. Treasury and federal agencies, mortgage-backed securities	$	—	$	716	$	716
Asset-backed securities, student loans	13		410		423
Asset-backed securities, credit cards	24		—		24
Asset-backed securities, other	92		4,440		4,532
Non-U.S. debt securities, mortgage-backed securities	—		375		375
Non-U.S. debt securities, asset-backed securities	—		798		798
Non-U.S. debt securities, other	—		464		464
State and political subdivisions	43		—		43
Collateralized mortgage obligations	—		162		162
Other U.S.debt securities	—		8		8
Derivative instruments, foreign exchange contracts	19		—		19
Total	$	191	$	7,373	$	7,564
Liabilities:
Derivative instruments, foreign exchange contracts	$	17	—		$	17
Derivative instruments, other	9		—		9
Total	$	26	—		$	26



December 31, 2012	Significant Unobservable Inputs Readily Available to State Street⁽¹⁾		Significant Unobservable Inputs Not Developed by State Street and Not Readily Available⁽²⁾		Total Assets and Liabilities with Significant Unobservable Inputs
(In millions)
Assets:
U.S. Treasury and federal agencies, mortgage-backed securities	$	—	$	825	$	825
Asset-backed securities, student loans	12		576		588
Asset-backed securities, credit cards	67		—		67
Asset-backed securities, other	103		3,891		3,994
Non-U.S. debt securities, mortgage-backed securities	—		555		555
Non-U.S. debt securities, asset-backed securities	—		524		524
Non-U.S. debt securities, other	—		140		140
State and political subdivisions	48		—		48
Collateralized mortgage obligations	—		117		117
Other U.S.debt securities	—		9		9
Derivative instruments, foreign exchange contracts	113		—		113
Total	$	343	$	6,637	$	6,980
Liabilities:
Derivative instruments, foreign exchange contracts	$	106	—		$	106
Derivative instruments, other	9		—		9
Total	$	115	—		$	115

⁽¹⁾Information with respect to these model-priced financial assets and liabilities is provided above in a separate table.

⁽²⁾Fair value for these financial assets is measured using non-binding broker or dealer quotes.

Carrying Value and Estimated Fair Value of Financial Instruments by Fair Value Hierarchy

The following tables present the reported amounts and estimated fair values of the financial instruments defined by GAAP, excluding financial assets and liabilities carried at fair value on a recurring basis, as they would be categorized within the fair-value hierarchy, as of the dates indicated.



					Fair-Value Hierarchy
December 31, 2013	Reported Amount		Estimated Fair Value		Quoted Market Prices in Active Markets (Level 1)		Pricing Methods with Significant Observable Market Inputs (Level 2)		Pricing Methods with Significant Unobservable Market Inputs (Level 3)
(In millions)
Financial Assets:
Cash and due from banks	$	3,220	$	3,220	$	3,220	$	—	$	—
Interest-bearing deposits with banks	64,257		64,257		—		64,257		—
Securities purchased under resale agreements	6,230		6,230		—		6,230		—
Investment securities held to maturity	17,740		17,560		—		17,560		—
Net loans (excluding leases)	12,363		12,355		—		11,908		447
Financial Liabilities:
Deposits:
Noninterest-bearing	$	65,614	$	65,614	$	—	$	65,614	$	—
Interest-bearing - U.S.	13,392		13,392		—		13,392		—
Interest-bearing - non-U.S.	103,262		103,262		—		103,262		—
Securities sold under repurchase agreements	7,953		7,953		—		7,953		—
Federal funds purchased	19		19		—		19		—
Other short-term borrowings	3,780		3,780		—		3,780		—
Long-term debt	9,699		10,023		—		9,056		967



					Fair-Value Hierarchy
December 31, 2012	Reported Amount		Estimated Fair Value		Quoted Market Prices in Active Markets (Level 1)		Pricing Methods with Significant Observable Market Inputs (Level 2)		Pricing Methods with Significant Unobservable Market Inputs (Level 3)
(In millions)
Financial Assets:
Cash and due from banks	$	2,590	$	2,590	$	2,590	$	—	$	—
Interest-bearing deposits with banks	50,763		50,763		—		50,763		—
Securities purchased under resale agreements	5,016		5,016		—		5,016		—
Investment securities held to maturity	11,379		11,661		—		11,661		—
Net loans (excluding leases)	11,121		11,166		—		10,316		850
Financial Liabilities:
Deposits:
Noninterest-bearing	$	44,445	$	44,445	$	—	$	44,445	$	—
Interest-bearing - U.S.	19,201		19,201		—		19,201		—
Interest-bearing - non-U.S.	100,535		100,535		—		100,535		—
Securities sold under repurchase agreements	8,006		8,006		—		8,006		—
Federal funds purchased	399		399		—		399		—
Other short-term borrowings	4,502		4,502		—		4,502		—
Long-term debt	7,429		7,780		—		6,871		909

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References+ Details

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

+ References+ Details